Bitcoin Futures vs. Bitcoin Spot – Key takeaways from CME BTC derivatives

Bitcoin’s bullish price streaks are getting stabilized but remained above $3,800 levels as CME BTC futures expiry approach but BTC futures price is ticking at $3740 levels as you could observe both price charts.

Please be noted that the coming Friday would be the latest spell of expiry of CME XBT futures contracts. To wrap-up tough times of 2018, the nature of futures contracts implies that they need to be settled on a set, predefined date, based on a contract. 

Key takeaways to be keenly observed during expiry: CME BTCUSD contracts of Dec’2018 tenors would be traded on or before this expiry period or settled. 

Usually, there would be a slight drop in the trading volumes of futures as it nears expiration, that couples with the volatility factor in the BTC spot market increases every time contract heads towards its expiry date owing to a potential short/long squeezing.

CME BTC futures have emerged as a leader along with CBOE in BTC futures, with sizable and growing USD volume through Q3/Q4 2018.

Please also be noted that the bitcoin futures are available comparatively with a lower commission than spot bitcoin trades where charges would be exorbitant. On the flips side, bitcoin futures wouldn’t be available from Friday and usually during weekends as they expire worthless. Whereas in spot trading mechanism, one can hold the possession of units of bitcoins in their respective wallets.

Currency Strength Index: FxWirePro's hourly BTC spot index is inching towards -49 levels (which is bearish), while hourly USD spot index was at 37 (mildly bullish) while articulating (at 11:39 GMT).

For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex